Accounting For Companies

Working Notes:
1. Pro-rata Ratio (Category B):
Applied : Allotted = 60,000 : 30,000 = 2 : 1.
Shekhar applied for 1,200 shares (Category B).
Shekhar's Allotted Shares = shares.
2. Application Money Analysis (Shekhar - Cat B):
Application money paid by Shekhar = 1,200 shares Rs 9/share = Rs 10,800.
Application money required for allotted shares = 600 shares Rs 9/share = Rs 5,400.
Excess Application Money (Shekhar) = Rs 10,800 - Rs 5,400 = Rs 5,400.
3. Allotment Money Due (Shekhar):
Allotment money due = 600 shares Rs 8/share = Rs 4,800.
Adjustment of Excess Application Money = Rs 4,800 (Since Excess Rs 5,400 > Due Rs 4,800).
Balance Excess after Allotment Adjustment = Rs 5,400 - Rs 4,800 = Rs 600.
This Rs 600 is Calls-in-Advance for Shekhar towards the first and final call.
4. First \& Final Call Money Due (Shekhar):
First \& Final Call due = 600 shares Rs 3/share = Rs 1,800.
Adjustment from Calls-in-Advance = Rs 600.
Net Amount Due from Shekhar on Call = Rs 1,800 - Rs 600 = Rs 1,200.
Shekhar failed to pay this amount. Calls-in-Arrears (Shekhar) = Rs 1,200.
5. Overall Application Money Analysis:
Total Application Money Received = 1,50,000 shares Rs 9 = Rs 13,50,000.
Total Application Money Required (for 1,00,000 allotted shares) = 1,00,000 Rs 9 = Rs 9,00,000.
Total Excess Application Money = Rs 13,50,000 - Rs 9,00,000 = Rs 4,50,000.
6. Overall Allotment Money Due:
Total Allotment Money Due = 1,00,000 shares Rs 8 = Rs 8,00,000.
Excess Application money available for allotment = Rs 4,50,000.
Amount Received on Allotment = Total Due - Excess Application Money Adjusted = Rs 8,00,000 - Rs 4,50,000 = Rs 3,50,000.
*(Assumption: No other default on allotment besides excess adjustment available).*
7. Overall First \& Final Call Money Due:
Total Call Money Due = 1,00,000 shares Rs 3 = Rs 3,00,000.
Total Calls-in-Advance from Application Excess = Rs 600 (Only Shekhar's case specified adjustment to call). Let's verify Cat A. Cat A: Applied 90k, Allotted 70k. Excess shares = 20k. Excess Money = 20k * 9 = 1.8L. Allotment Due = 70k * 8 = 5.6L. Excess money (1.8L) fully adjusted on allotment. So, only Shekhar's excess Rs 600 goes to Calls-in-Advance.
Total Calls-in-Arrears = Rs 1,200 (Shekhar).
Amount Received on Call = Total Due - Calls-in-Advance - Calls-in-Arrears
Amount Received = Rs 3,00,000 - Rs 600 - Rs 1,200 = Rs 2,98,200.
Journal Entries in the books of Alexia Limited
\begin{longtable}{|p{1.5cm}|p{8cm}|r|r|} \hline Date & Particulars & Dr. (Rs) & Cr. (Rs)
\hline \endfirsthead \hline \endfoot \hline \endlastfoot (i) & Bank A/c \hspace{5.3cm} Dr. & 13,50,000 &
& \indent To Equity Share Application A/c & & 13,50,000
& \textit{(Being application money received for 1,50,000 shares @ Rs 9 each)} & &
\hline (ii) & Equity Share Application A/c \hspace{1.8cm} Dr. & 13,50,000 &
& \indent To Equity Share Capital A/c (1L shares x Rs3) & & 3,00,000
& \indent To Securities Premium A/c (1L shares x Rs6) & & 6,00,000
& \indent To Equity Share Allotment A/c (Excess adjusted) & & 4,50,000
& \indent To Calls-in-Advance A/c (Shekhar's excess beyond allotment) & & 600
& \textit{(Being application money adjusted on allotment, excess transferred to allotment and calls-in-advance)} & &
\hline (iii) & Equity Share Allotment A/c \hspace{2.0cm} Dr. & 8,00,000 &
& \indent To Equity Share Capital A/c (1L shares x Rs4) & & 4,00,000
& \indent To Securities Premium A/c (1L shares x Rs4) & & 4,00,000
& \textit{(Being allotment money due on 1,00,000 shares @ Rs 8 each)} & &
\hline (iv) & Bank A/c \hspace{5.3cm} Dr. & 3,50,000 &
& \indent To Equity Share Allotment A/c & & 3,50,000
& \textit{(Being balance allotment money received [8,00,000 - 4,50,000])} & &
\hline (v) & Equity Share First and Final Call A/c \hspace{0.5cm} Dr. & 3,00,000 &
& \indent To Equity Share Capital A/c (1L shares x Rs3) & & 3,00,000
& \textit{(Being first and final call money due on 1,00,000 shares @ Rs 3 each)} & &
\hline (vi) & Bank A/c \hspace{5.3cm} Dr. & 2,98,200 &
& Calls-in-Advance A/c \hspace{2.9cm} Dr. & 600 &
& Calls-in-Arrears A/c (Shekhar) \hspace{1.5cm} Dr. & 1,200 &
& \indent To Equity Share First and Final Call A/c & & 3,00,000
& \textit{(Being first and final call money received, advance adjusted and Shekhar's arrears recorded)} & &
\hline \end{longtable}